They addressed transtasman media via a phone conference last night.

FTI Consulting spokesman Justin Clark said it would be weeks, if not months, before the administrators completed a detailed report on whether any offences had been committed by LM.

The firm voluntarily called in administrators on March 19, when it became clear that it would not be able to meet its debt obligations.

But the debts are not huge. Aside from $9.9 million owed to investors, there is $1 million owed to employees and $13 million in funds management fees paid in advance.

LM Investment Management has charged quite high fund management fees, and two loans from LM’s Managed Performance Fund (MPF) to LM founder Peter Drake are believed to be being fingered as possible culprits for the company’s demise, although the administrators would not confirm that beyond saying they were investigating them.

On paper, LM Investment Management has $740 million in assets, ranging from cash, foreign currency, direct real property, commercial loans secured by first or second mortgages, and listed shares.

The MPF has $396.6 million in assets.

Clark said: “It’s an extremely large, complex web of transactions…. Cashflow in and out of funds is something we’re looking at.”

The loans in question are $17 million to Drake as a private individual, and $249 million to property development Madison Estate, which is owned by LM Investment Management.

There have been suggestions Madison, which is undergoing major earthworks, is not worth anything like that figure and an updated valuation has been requested, but not yet received.

Clark said the LM MPF was a second-ranked security behind Suncorp, which has a $19 million exposure it wants to be rid of.  He said the administrators were looking to refinance that debt to avoid receivership.

The MPF is in ASIC’s sights because it has been operating as an unregulated fund outside Australia’s Corporations Act. That means Australian retail investors cannot invest in it without complying with strict conditions.

The fund’s constitution, unlike those of regulated funds, says the trustee must resign if administrators are appointed. “Although LMIM remains currently the MPF trustee, in light of these concerns the administrators after consultation with ASIC have determined to make an application to the Supreme Court of Queensland to be appointed receivers of the assets of MPF.”

The administrators must file a report by July 25. Clark said they were going through every loan to ensure the impairment provisions were fair and reasonable. He said it was too early to estimate any returns to investors or creditors.

LM Admin is believed to have about $31 million in related party loans.